HUL says quick commerce growing 40% to 50%, builds channel specific packs and tech to drive next phase of growth

Hindustan Unilever Ltd (HUL) is stepping up its quick commerce strategy, saying the fast growing channel continues to deliver 40% to 50% growth for the company even as concerns emerge over a possible moderation in the industry's pace of expansion.

Speaking after the FMCG major reported its June quarter earnings, CEO and managing director Priya Nair and CFO Niranjan Gupta said the company is investing in channel specific portfolios, technology and data capabilities to deepen its presence on quick commerce platforms, which it believes remain structurally attractive for long term growth. 

"As far as our growth is concerned, our growth has been very strong, double digit, 40% to 50% kind of growth that we are growing in quick commerce," Gupta said.

While acknowledging that the segment is witnessing the entry of new players and continues to evolve rapidly, Gupta said HUL's focus is on improving product availability, developing curated technology solutions, building tailored assortments and creating channel specific price pack architecture. The company is also working closely with platform partners while leveraging consumer data and insights to improve conversion, visibility and repeat purchases. "The channel remains fast growing. It is structurally attractive. It provides deepening of scale and improving the quality of growth," he said. 

Channel specific strategy

For HUL, quick commerce is no longer just another sales channel but a route to market that allows the company to serve consumers differently. Nair said the rise of quick commerce has enabled HUL to segment consumers more effectively and build channel specific portfolios with packs designed exclusively for the format.

"Quick commerce actually allows us to segment consumers and that is a very powerful thing from our perspective to actually create the right portfolio channel architecture," she said, adding that it creates opportunities to introduce new sub segments that would have been difficult to address through traditional retail channels. 

The company has also reorganised internally to strengthen its execution in the channel. Nair said quick commerce forms part of HUL's broader go to market strategy, alongside expanding distribution in general trade and organised retail, as it sharpens its focus on faster growing, low penetration categories and acquisitions such as Minimalist and Oziva. 

The company's investments come as quick commerce continues to gain importance in its overall omnichannel strategy. During the June quarter, HUL said quick commerce continued to register strong double-digit growth, while it expanded distribution across small towns and rural markets through general trade and accelerated the offline expansion of brands such as Minimalist and Simple.